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Senator Warren invites student loan servicer to testify before Congress

Federal Issues Congress Testimony Student Loan Servicer Consumer Finance Consumer Protection

Federal Issues

On March 18, Senator Elizabeth Warren (D-MA) sent a letter to a large student loan servicer, inviting its executives to testify at an upcoming hearing hosted by the Banking, Housing, and Urban Affairs Subcommittee on Economic Policy on April 10. The hearing will focus on the servicer’s performance, student loan borrowers’ experience with return to repayment, and the Public Service Loan Forgiveness (PSLF) program. The letter alleged the servicer “mishandl[ed]” borrowers return to repayment after the pandemic by impeding public servants’ access to PSLF relief, among other things. Senator Warren also alleged the servicer failed to perform “basic servicing functions” for PSLF borrowers which led to a backlog of public service workers’ forms eligible towards receiving credit on their student debts. The letter further alleged the servicer implemented a “call deflection scheme” to redirect borrowers' calls from customer service representatives. Testifying would give the servicer the chance to provide context to the allegations, Warren said.